Many VCs, however, tend to shy away from raising funds through the ISF (which would cut out the pb of “bad angel money”) bc max contributions are €50,000/person and the money needs to be invested within a year. Most VC funds don’t want to go through the trouble of raising with a large number of individuals only to find that they have to invest quickly.

But otherwise, there are “angel training groups” that help new angels invest, which could also help the problem.

With the right efforts this could create more business angels investing in more smart companies. With the wrong efforts it could lead to people blindly cutting checks to the wrong companies just to avoid taxes.

Would be interesting to see if there’s a way to channel this in as smart money rather than dumb money mucking up valuations/ term sheets and potentially hurting entrepreneurs.